Interim report - Third quarter of 2012

Summary: SP Group generated profit before tax and non-controlling interests of DKK 28.3 million in 9M 2012, against DKK 25.6 million in 9M 2011. Relative to the year-earlier period, revenue was up by 13.2% to DKK 822.6 million and EBITDA improved by 3.0% from DKK 72.1 million to DKK 74.3 million. In other words, the positive trend in revenue and earnings of 2011 has persisted in 2012. The upgraded full-year guidance announced in the H1 interim report is maintained: We continue to expect full-year 2012 profit before tax and non-controlling interests of DKK 40-45 million and revenue of around DKK 1,050-1,100 million.

The Board of Directors of SP Group A/S has today considered and approved the interim report for the nine months ended 30 September 2012. Highlights of the interim report:

The 9M 2012 revenue was up by DKK 96.1 million to DKK 822.6 million, equal to a 13.2% improvement on the year-earlier period. Q3 revenue grew by 10.7%.
EBITDA for 9M 2012 was DKK 74.3 million, against DKK 72.1 million in 9M 2011. EBITDA was DKK 25.5 million in Q3 2012, against DKK 26.4 million in Q3 2011.
Earnings before interest and tax (EBIT) came to DKK 39.6 million in 9M 2012, against DKK 39.6 million in 9M 2011. EBIT was DKK 14.6 million in Q3 2012, against DKK 15.4 million in Q3 2011.
Net financial items were an expense of DKK 11.3 million in 9M 2012, a DKK 2.7 million improvement on 9M 2011. An expense of DKK 4.2 million was recorded for Q3 2012, compared with an expense of DKK 5.4 in Q3 2011.
The profit before tax and non-controlling interests amounted to DKK 28.3 million in 9M 2012, against DKK 25.6 million in 9M 2011. The Q3 2012 profit was DKK 10.4 million, against DKK 9.9 million in Q3 2011.
Earnings per share (diluted) came to DKK 10.25 in 9M 2012, an 18.8% improvement from DKK 8.63 in 9M 2011.
The coating business (Accoat) reported a DKK 48.4 million revenue improvement to DKK 147.7 million for 9M 2012 and an EBITDA improvement to DKK 28.2 million from DKK 8.2 million in 9M 2011.
The plastics businesses (SP Moulding, SP Medical, Tinby, TPI, Ergomat and Gibo Plast) reported a DKK 42.2 million revenue improvement for 9M 2012 to DKK 678.6 million. EBITDA fell to DKK 56.9 million from DKK 73.1 million in 9M 2011.
There was a cash inflow from operating activities of DKK 39.4 million in 9M 2012, as compared with a cash outflow of DKK 0.1 million in 9M 2011. Cash flows from operating activities were an inflow of DKK 21.5 million in Q3 2012, against DKK 13.9 million in Q3 2011.
Net interest-bearing debt amounted to DKK 430.3 million at 30 September 2012, against DKK 407.6 million at 30 September 2011. The higher debt is due to the property acquisition that was previously held under an operating lease.
The upgraded guidance announced after the first six months of the year is maintained: We continue to expect a profit before tax and non-controlling interests of DKK 40-45 million and full-year revenue of DKK 1,050–1,100 million for 2012, but the market outlook remains unclear.

CEO Frank Gad said: “We are pleased to see that our customers are buying more products from us and that our earnings have continued to improve, but global economic growth has slowed from an already weak level. Fortunately, our customers in the medical devices, cleantech and food-related industries, accounting for more than 80% of our consolidated revenue, continue to perform well.”

Read the entire report here

Best regards

Niels K. Agner

Chairman of the Supervisory Board

Frank Gad

Chief Executive Officder

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